Why Icahn Enterprises Stock Was Crashing This Week
Shares of Icahn Enterprises (NASDAQ: IEP) were falling this week, according to data from S&P Global Market Intelligence. The publicly traded investment fund run by well-known investor Carl Icahn was the subject of a short report this week from Hindenburg Research. As of 10:14 a.m. EST on Friday, May 5, shares of Icahn Enterprises are down 30.2% this week.
You can think of Icahn Enterprises as a publicly traded investment fund. Icahn and his family own 85% of the shares outstanding, but the other 15% is publicly available to purchase, allowing individual investors to invest alongside a Wall Street legend.
However, the high-profile short-seller Hindenburg Research is alleging that Icahn Enterprises is grossly overvalued and using a "Ponzi-like" scheme to keep ex-investors happy. In its short report, it notes that Icahn Enterprises trades at a 218% premium to its stated net asset value (NAV), or the stated value of its investments.
Source Fool.com
